The airport is owned by Derry City Council
The terminal at City of Derry Airport is to be extended as part of a major modernisation plan.
Two new buildings are planned for the site which will include retail units, a business lounge and a dining area.
The aim of the new multi-million pound development is to improve passenger flow and meet current EU customs and immigration regulations.
Chair of the airport committee, DUP councillor, Joe Miller said it is a great opportunity for the airport.
"It's looking very positive for the airport at the moment," he said.
"When people come in there's nothing for them to do and few places to spend their money but that will change.
"We will have the new cafes, shops and a new departures lounge which will hopefully shorten the queuing," he added.